Yahoo! has beaten its earnings estimates for Q3 2002. The company put its strong performance down to persuading more visitors to pay for online services.
For the quarter ended September 30, 2002, Yahoo! generated net revenues of $248.8 million, a 50% increase from the same period last year. EBITDA was $60.2 million, while net income was $28.9 million, compared with a net loss of $24.1 million the previous year.
Around one third of the company’s Q3 revenue came from subscriptions and its employment listings service, HotJobs. The $83.1 million collected from fees and listings during Q3 was more than double that of a year ago.
I am proud of Yahoo!’s unwavering focus on executing and managing against our priorities in order to deliver strong top-line, EBITDA and free cash flow growth. Despite a challenging external environment, it is clear Yahoo! is benefiting from the strategy and plan we laid down nearly a year ago and that our efforts to position the company for sustainable, profitable growth are paying off, said Terry Semel, chairman and chief executive officer, Yahoo! Inc.
Yahoo! is focused on maximizing long-term free cash flow per share as the most appropriate measure of how we can increase value for our shareholders. In order to meet this objective, we have made very good progress on the two most important operating benchmarks we use to measure success, namely revenue per user and revenue per employee. In addition, we kept a tight rein on capital spending and reduced our outstanding share base, said Susan Decker, chief financial officer, Yahoo! Inc. We are very pleased with the growth we have achieved this quarter, most notably in the areas of attracting small and medium sized businesses to our marketing platform, and in our efforts to establish billing relationships with consumers and small businesses for a large number of premium services.